Stock Trading Alert originally sent to subscribers on September 11, 2014, 6:45 AM.
Briefly: In our opinion, speculative short
positions are favored (with stop-loss at 2,030 and a profit target at 1,900,
S&P 500 index)
Our
intraday outlook is bearish, and our short-term outlook is bearish:
Intraday
(next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S.
stock market indexes gained 0.3-0.8% on Wednesday, extending their recent
fluctuations, as investors continued to hesitate following last week’s economic
data announcements, among others. The S&P 500 index remains relatively
close to its all-time high of 2,011.17. The nearest important level of
resistance is at around 2,000-2,010, and the support level is at 1,980-1,985,
marked by recent local lows. There have been no confirmed negative signals so
far. However, we still can see negative technical divergences, accompanied by
overbought conditions:
Expectations
before the opening of today’s session are negative, with index futures
currently down 0.2-0.3%. The main European stock market indexes have lost
0.2-0.4% so far. Investors will now wait for the Initial Claims data release at
8:30 a.m. The S&P 500 futures contract (CFD) continues to fluctuate along
the level of 2,000. The resistance level is at around 2,000-2,010, and the
nearest important level of support is at 1,980-1,985, marked by local lows, as
we can see on the 15-minute chart:
The
technology Nasdaq 100 futures contract (CFD) remains in a short-term consolidation,
as it moves along the level of 4,000. The nearest important level of resistance
is at around 4,100-4,115, and the support level is at 4,050-4,060, marked by
local lows, as the 15-minute chart shows:
Concluding,
the broad stock market retraced some of its month-long advance as the S&P
500 index broke below the level of 2,000. We remain bearish, expecting a
downward correction or uptrend reversal. Therefore, we continue to maintain our
already profitable speculative short position with entry point at 2,000.5
(S&P 500 index). The stop-loss is at the level of 2,030 and potential
profit target is at 1,900 (S&P 500 index). It is always important to set
some exit price level in case some events cause the price to move in the
unlikely direction. Having safety measures in place helps limit potential
losses while letting the gains grow.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
